If one starts a conversation about cryptocurrencies, at one point somebody will bring up the subject of tangibility. How in the world one could invest in something that they cannot touch or feel or even thoroughly understand?
While this argument takes place thousands of investments products such as futures, derivatives and equities change hands without anyone really touching them. Heck, no one really understands them since all these are nothing but promises about the future. To brake it even further, investments are nothing different that magic ball predictions. There is nothing valuable about them other than what we cumulative agree to pay for them.
Adding to the argument of intangibility of cryptocurrencies, we have tangible products such as Apple computers or Audi cars that have most of their value amplified by intangible beliefs. How can one computer be valued almost triple the value when most components and design and function is much the same (or sometimes worse)? How can one car with pretty much the same specifications as all cars have such an inflated price? The answer is simple. That fancy logo, marketing and advertising can create a different perception that can increase the value of something. What changes is the belief towards a perception about something.
When it comes to personal relationships we value trust when it comes to company contracts or personal relationships. That value though is not appreciated the same when we are the party trying to take over another partner from a rival company or when we fall in love with someone that is already in a relationship. Our perception of valued trust changes based on our personal interests.
All these values are intangible. There is nothing to touch other that basic tools we use to access these values. We can touch the hardware wallet, we can touch the keyboard and mouse, we can touch the skin of our partner or the 4 pieces of paper that is the flesh and bones of an X multi-billion corporation in Cayman islands.
What makes us human is the beliefs we carry. Religion, Commerce or Relationships are nothing but intangible ideas that we have to adhere to in order to be part of a contract (whether social or otherwise). It is on this very idea that intangible idea of Bitcoin value is based upon and in now way it is any different than anything else around us. A diamond and a charcoal are pretty much the same on the molecular level yet our perception is what gives them value.
Absolutely spot on! The real problem people have is not understanding why others see value in the thing in question (like cryptocurrency in this instance) not that it's intangible. They are just trying to rationalize their fear of the unknown or at least the non-understood.
yup you are hundred percent true, even if you start reasoning with them they won't listen to ya :)
instead of exploring it... :(
that's pretty cool to know....
Yes, bitcoin grew more when we gave it that value !! Otherwise it was nothing once. So did steem !!
We can’t touch love, thoughts, ideas, god or emotions, but we still have faith in these. Similarly we cant touch bitcoin, we can only believe it !!
Nice work 👍🏻
But problem is organizations like bitconnect, nicehash, etc they just shut down their company,site ( whatever it called ) now millions of investers on the street.. we need to regulate atleast .. don't ask me how.lol
Thank you for the post it gives deep understanding about crypto currency.
If one starts a conversation about cryptocurrencies, and someone inevitably brings up the subject of tangibility, that's your cue to bring up the subject of religion.
Religion is a network, similar to how Money is a network. Networks are fundamental to the human race, it enables us to create more value through cooperation and collaboration than if we were to do it alone. The value is in the network - that's what make cryptocurrencies "real" or "tangible".
great job
A good opinion and idea, you have a great ability to create a brilliant ideology. Congratulations and success for the participation. Your ability to be praised.
The belief is what metamorphoses intangible commodity into a tangible stuff of great value.
We can't see the air we breath yet it remains the most tangible gift for survival
Since I started investing in cryptocurrency, this question used to pop up from time to time. People who are investing in gold and shares have a very hard time grasping investment in cryptocurrencies cause of their intangibility. Nicely explained post :)
Amazing. Thak you for sharing
@kyriacos
Indeed, value is only determined by demand and what the masses deem to be valuable.
Not sure how masses can believe in value of Fiat but not in crypto, the difference is that we as the masses could have control over crypto values, and not be dictated to by a select few who end up minipulating fiat for their own gains, leaving everyone else out of the equation.
We actually have an opportunity to create our own wealth, but then also at the same time as much as we are able to control our own destiny with realised profits, we also have to be brave enough to take the responsibility for possible losses.
Bottom line is we as the masses want decentralised currency. so we can spread the worlds wealth more evenly, with being told what to do with our own money.
Nice analogy. Like the image, crypto world is very big and yet to be uncovered. Its just the peak of the iceberg which is visible. Sure it will take time to stabilize, but its going to be the future.
Thank you for sharing! While I agree on a certain level regarding what you said about the value of objects, value can be determined in many ways. Diamonds and coal may be similar in term of molecules, but Diamonds are condensed under immense pressure, making them extremely durable. Diamond is used on the tips of many drills too, making it valuable.
The factors of value are made up of demand of course, but value then correlates with that supply of something. Then, we must look at value As a factor of use cases too. Cryptocurrencies have outstanding use cases that people demand, and are limited in supply, which explains their value adequately.
Thanks for sharing!
If bitcoin is an iceberg, then who are we? passengers of the Titanic?
why would you think so?
I saw an analogy in the situation. Someone is running, somebody is drowning. Where are you from?
switzerland. we can pay our taxes in crypto here... I dont see any iceberg :D
on Titanic, the iceberg was not seen too.
I thought you were from Russia
Absolutely right and it's a good article 👍🏻
Yes, value is subjective; I think most people who have conflict with this fact are too fearful to not accept that there can be values apart from what an authority or some tradition says it is.
Like the value we give to certain posts.